Just two days following the controversial publication of the bill to amend the 2014 Electricity Industry Law (the "Amendment"), District Court Judge Juan Pablo Gómez Fierro, specialized in administrative, antitrust and telecom law in Mexico City, granted a temporary injunction against the Amendment, in an amparo proceeding.
Judge Gomez Fierro decided that the injunction should protect all participants of the power market since protection of a single plaintiff would result in competitive advantages to only that plaintiff and disrupt the market.
Generally, amparo proceedings have only inter partes effects, but Judge Gomez Fierro argued, based on Supreme Court precedents and the Inter-American Human Rights Convention, that general effects were in the best interest of the market and society as a whole.
Temporary injunctions are based on a prima facie review of the constitutional questions posed by plaintiffs. The district court's decision held that the Amendment was, at first appearance, contrary to antitrust and environmental protection constitutional provisions.
The temporary injunction is likely to be challenged by the Ministry of Energy (Secretaría de Energía, "SENER"). If the injunction is upheld, the suspension of the Amendment will continue until a final decision is reached. Meanwhile, the 2014 Electricity Industry Law will be in effect until a decision on the merits of the claim against the Amendment is issued.
Plaintiffs have 30 days from the date of publication of the Amendment to challenge its constitutionality. It is likely that additional amparo proceedings will be filed.
Visit us at mayerbrown.com
Mayer Brown is a global legal services provider comprising legal practices that are separate entities (the "Mayer Brown Practices"). The Mayer Brown Practices are: Mayer Brown LLP and Mayer Brown Europe – Brussels LLP, both limited liability partnerships established in Illinois USA; Mayer Brown International LLP, a limited liability partnership incorporated in England and Wales (authorized and regulated by the Solicitors Regulation Authority and registered in England and Wales number OC 303359); Mayer Brown, a SELAS established in France; Mayer Brown JSM, a Hong Kong partnership and its associated entities in Asia; and Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. "Mayer Brown" and the Mayer Brown logo are the trademarks of the Mayer Brown Practices in their respective jurisdictions.
© Copyright 2020. The Mayer Brown Practices. All rights reserved.
This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.